After Weeks of Sharp Gains AUDUSD Slips

OctaFx | Dec. 5, 2018

After weeks of sharp gains, the AUDUSD pair slipped today after the GDP numbers from Australia. The pair declined from a high of 0.7395 to an intraday low of 0.7288. The decline wiped out the gains made this week.

December 5,OctaFX– The Australian dollar fell after the third quarter GDP numbers missed the consensus estimates. The numbers from the Australia Bureau of Statistics showed that the economy expanded by 2.8% in the quarter.

This was lower than the estimated 3.3%. On a quarterly basis, the economy expanded by 0.3%, which was lower than the estimated 0.6% and the slowest expansion in three years. The GDP numbers dampened the market after a hawkish statement from the Reserve Bank of Australia yesterday.

AUDUSD technical analysis

The RSI declined from a high of 70, to the current 47 and is likely to continue the declines. The pair’s price is along the 42-day EMA and below the 21-day EMA.

At the same time, the Average True Range is at the highest level since September this year, which is a sign of increased volatility. The pair will likely continue the declines before resuming the upward trend.

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